Pages

Friday, 27 October 2017

4 smart tips to get your finances back on track after a setback

Financial setbacks can be tough and a great source of stress. It
can indeed be such a damning and hopeless situation to be in, but don't lose
hope, you can get through it and come out on top. Here are 4 smart tips to get your finances back on track
after a setback.

Avoid Making it Worse

Try to avoid making it worse by falling into the trap of quick
fixes because most of them are scams and will end up making you lose even more
money in the process. Rather than panicking and trying to get a quick fix, try
getting help from financial institutions or non-governmental organizations that
have recovery programs for financial setbacks; you can also try to get help
from religious or service organizations that have personal finances programs to
help with recovery from financial setbacks.

Assess The Situation and Change Your Attitude

Sometimes financial setbacks occur due to circumstances beyond
our control and sometime they might have been caused by carelessness,
negligence or poor financial choices. Regardless of the cause, it is important
to first assess the situation that led to your 'financial downfall', try to
figure out what you did wrong and what you can do differently next time to
avoid such an occurrence. Also, if you are able to assess the situation and
figure out what exactly caused your financial misfortune, it will be easier for
you to make a plan to get yourself out of the mess.

Changing your attitude from that of despondency to hope,
determination and resolve is probably the one thing that will make properly
assessing the situation and getting out of the financial mess possible.
Frankly, without a positive attitude, you are destined to fail and remain in
the financial mess you have found yourself in.

Postpone Making Big Decisions With Money While Recovering

It might be very tempting to want to 'get back in the game' and
make big decisions with money to maybe even help speed up the recovery process.
However, no matter how tempting it is, please don't do it. Many times such 'big
decisions' might weigh too heavily on your already weak finances and cause
another setback. Postpone making big decisions with money until you are able
to, at the very least, adjust your finances to a comfortable level and
'acclimate emotionally and practically to your new circumstances'. The fact is
that dealing with stress diminishes your ability to make smart money decisions
and if you do not give yourself time, you will end up making bad investments
that can regress whatever progress you have made in your financial recovery.

Adjust Your Budget and Set Realistic Goals

It takes money to bounce back from a financial disaster
(well duh), so if you've lost everything, you would need to
prioritize your spending more than ever because it is how well you manage your
income that will make or mar your road to financial recovery. You also need to
set realistic goals for your recovery process so you don't end up discouraged
and frustrated, and ultimately set yourself up for failure. It is advisable to
be patient with yourself and not lay down any plan that will put unnecessary
pressure on yourself; try to remember that stress diminishes your ability to
make smart money decisions, so you need to ensure that your goals will not
contribute to the stress you're already dealing with. Be realistic about the
whole process and be practical about the time you would need to fully recover.
Speaking to a financial mentor or counselor (this might be a friend or family
member that has either gone through the same thing or has some experience in
the area) can be of significant help in setting goals to guide your financial
recovery process.